Taxpayers flag AIS errors on social media as ITR deadline nears; I-T dept responds

With the Income Tax Return (ITR) filing deadline approaching, taxpayers have taken to social media platform X to highlight discrepancies in their Annual Information Statement (AIS). Many are raising concerns that incorrect entries in AIS could create hurdles in filing returns for the Assessment Year (AY) 2025-26.

One such case was flagged by a user named CA Ajit Mehta on Wednesday, August 27, 2025. Mehta reported that his AIS was showing repeated entries for mutual fund transactions. According to him, units purchased in the demat account and sold through NSDL and CDSL were being duplicated, with the same transactions appearing again via KFin Technologies and CAMS.

“Mutual fund units purchased in Demat & sold captured through NSDL & CDSL and same transactions repeated in AIS through KFIN & CAMS while data capture shud happen for physical folio only,” Mehta wrote.

Tax department’s response

Responding to the query, the Income Tax Department clarified that taxpayers have the option to provide feedback if they find errors in their AIS.

Users must log in to their e-filing account and navigate to the AIS section.

From there, they will be redirected to the Compliance Portal, where they can go to the ‘SFT Information’ tab.

Taxpayers can then submit feedback, marking the entry as “information is not fully correct.”

For unresolved cases, the department has asked taxpayers to write to cmcpc_support@insight.gov.in
 with their PAN and mobile number. They can also reach out to the AIS Help Desk at the toll-free number 1800-103-4215.

The last date to file ITR for non-audit cases is September 15, 2025. Tax experts caution that filing early is advisable to avoid a last-minute rush and ensure quicker refunds.

Why AIS matters

The Annual Information Statement (AIS) is one of the most important documents for taxpayers. Introduced as an advanced version of Form 26AS, it provides a consolidated view of all financial data reported to the tax department.

AIS captures:

TDS and TCS details

Bank interest income

Dividends from companies and mutual funds

Capital gains from stocks, mutual funds, ETFs

Foreign dividends

Property transactions

It even consolidates investment and transaction data reported by registrars, brokers, banks, and government bodies. This comprehensive view helps the Income Tax Department match declared income with reported transactions.

Failure to reconcile AIS with your own records may lead to notices, penalties, and interest. If the income reported in AIS is higher than the income declared in ITR, it could be flagged as under-reporting. Penalties can go up to 200% of unpaid tax, along with interest at 24% per annum under Sections 234B and 234C of the Income Tax Act.

How AIS helps avoid tax notices

AIS is designed to act as a proactive compliance tool for taxpayers. Before filing ITR, reviewing AIS carefully can prevent mismatches that may otherwise trigger scrutiny.

For example:

If AIS shows interest income or dividends that you missed, add them before filing.

If it captures a property sale or stock gain, ensure it is declared under capital gains.

In case of duplication or incorrect entries, use the feedback mechanism to clarify.

Experts also recommend manually adding income not reported in AIS, such as foreign dividends, so that there is no underreporting.

Reconciling AIS with your own records

While AIS is comprehensive, it may not always be flawless, as highlighted by the repeated entries issue flagged by taxpayers. That is why experts advise:

Cross-check AIS with bank statements, broker contracts, and demat records.

Verify AIS data with Form 26AS, which reflects TDS credits.

Keep a personal log of assets, investments, and income sources to reconcile.

As the ITR deadline of September 15, 2025 nears, taxpayers are urged to review their AIS closely and act promptly if discrepancies are found. While errors like duplicate entries are possible, the Income Tax Department has provided feedback tools and helpdesk support to resolve them.